How Spirit Airlines’ uncertain future could add cost and stress to travel across America
A federal judge’s order blocking a $3.8 billion-dollar deal that would have JetBlue Airways purchase rival Spirit Airlines leaves Spirit with an uncertain future. The ruling has implications for leisure travelers, small airports, and offbeat destinations that rely on Spirit's low-cost, no-frills service.
Spirit's uncertain future and its impact on small airports and travelers
Last week, a federal judge’s order blocked the $3.8 billion deal that would have JetBlue Airways purchase rival Spirit Airlines, a ruling now being appealed by the airlines.
Spirit’s uncertain financial future has its niche of leisure travelers nervous, from college students to family holiday fliers, missionaries and others seeking no-frills airfares.
It’s also a potential economic shock for small airports such as Arnold Palmer Regional Airport east of downtown Pittsburgh, which lures in travelers from a three-state area, and regions including South Florida.
How Spirit Airlines' uncertain future affects specific regions and markets
Few places will feel the impact harder than the Arnold Palmer Regional Airport (LBE) if Spirit can’t keep flying. About an hour east of downtown Pittsburgh in the city of Latrobe, Pennsylvania, the airport serves the gritty coal towns east of Pittsburgh but also lures in travelers from a three-state area with free parking, short TSA lines, and low fares from Spirit.
Spirit Airlines fills a niche for leisure travelers, college students, missionaries, and others seeking bargain basement, no-frills fares. From a family perspective, a Florida without Spirit hurts in two directions. Its absence from the market will likely raise prices for incoming tourists from the north. But it will also cut off affordable vacation options for South Florida families heading to the Caribbean.
From a tourism perspective in South Florida, Spirit is a lifeline. "This isn’t good for us. South Florida really depends on them. It is a healthy market with two low-cost providers that compete with one another," says Professor Jase Ramsey, a Florida Gulf Coast University management professor.
The significance of offbeat destinations and competition for Spirit Airlines
Spirit Airlines' focus on offbeat destinations sets it apart from other airlines, and the judge's ruling against the JetBlue and Spirit merger could impact competition and prices in the market.
Part of Spirit’s challenges is that its prices are so low that it isn’t just competing with airlines but also with buses and trains. Having the ultra-low-cost carriers around keeps everyone’s prices lower. “There is a role for those players, and it is really important to provide those choices; they go to places that the legacies airlines don’t," says Paul Vaaler, a professor at the University of Minnesota Law School and Carlson School of Management.
Meanwhile, small airports like the Arnold Palmer Regional Airport hope to see Spirit stay in the sky as the airline has been a crucial factor in their survival.
